Google's earnings up 16% as more money goes mobile

GOOGLE'S latest quarterly results provided further proof that the internet search leader is figuring out how to make more money as Web surfers migrate from personal computers to mobile devices.

The first-quarter numbers released today show that a recent decline in Google's average ad prices is easing.

The trend indicates that marketers are starting to pay more for the ads that Google distributes to smartphones and tablet computers.

Mobile ads so far have fetched less money than those viewed on the larger screens of laptop and desktop computers.

But a growing number of people are clicking on mobile ads as they increasingly connect to internet services on smartphones and tablets, driving down average price paid for a marketing link.

Google's average price, or the "cost per click" to advertisers, has fallen from the previous year in six consecutive quarters, including the opening three months of the year.

The latest decrease in average ad prices was 4 per cent. By comparison, Google's average ad price fell by 6 per cent during the final three months of last year and by 12 per cent during last year's first quarter.

Google's stock edged up $US4.09, or 0.5 per cent, to $770 in extended trading after the numbers came out.

Google earned $3.3 billion, or $9.94 per share, during the opening three months of the year.

That was a 15% increase from $2.9 billion, or $8.75 per share, last year.